The Role of Mission and Values in Strategic Human Resource Management

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1 Strategic HR Management instructor s Manual The Role of Mission and Values in Strategic Human Resource Management By Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

2 Project Team Author: SHRM project contributors: External contributor: Copy editing: Design: Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR Bill Schaefer, SPHR Nancy A. Woolever, SPHR Sharon H. Leonard Katya Scanlan, copy editor Scott Harris, senior graphic designer 2009 Society for Human Resource Management. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR Note to HR faculty and instructors: SHRM cases and modules are intended for use in HR classrooms at universities. Teaching notes are included with each. While our current intent is to make the materials available without charge, we reserve the right to impose charges should we deem it necessary to support the program. However, currently, these resources are available free of charge to all. Please duplicate only the number of copies needed, one for each student in the class. For more information, please contact: SHRM Academic Initiatives 1800 Duke Street, Alexandria, VA 22314, USA Phone: (800) Fax: (703) Web:

3 The Role of Mission and Values in Strategic Human Resource Management Introduction to the Learning Module The purpose of this module is to encourage students to examine organizations through their mission and values statements. Students will formulate strategic human resource activities that support achievement of the organization s mission. Audience This learning module is appropriate for undergraduate students in human resource or business management programs. Module Learning Objectives By the end of this module, students will: nn Analyze mission and values statements from various organizations. nn Link HR functions to an organization s mission statement. nn Assess organizational behavior as a reflection of the organization s mission statement. nn Formulate HR activities to reinforce the organization s mission statement. Learning Module Structure This learning module is comprised of three 50-minute class sessions. Session 1: This first class session addresses the role of mission and values in organizations. Students are asked to identify an organization s purpose (beyond simply making money) and examine how the organization identifies that purpose in its mission statement. Using Microsoft as an example, students analyze how HR activities can align with and reinforce the organization s mission statement. The 2009 SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 1

4 Microsoft worksheets necessary for this activity are included at the end of these instructor notes. I. Mission and values: a. Class discussion: Why does your organization exist? b. Define the role of mission and values in the organization. c. Whose mission statement is this? II. Human resource functions. III. Living the mission statement: a. Getting the word out. b. Class activity: Mission, values and HR functions at Microsoft. c. Recognizing mission and values from a consumer perspective. d. Recognizing mission and values from an employee s perspective. IV. Research assignment for next class session. Session 2: In preparation for this session, students will research the mission and values statements of a variety of organizations, answering two questions: 1. What does the organization say about itself in its mission statement? 2. Is the organization living its mission? The first question can be answered from information published on an organization s web site or in its annual report. The second question is answered by researching other media sources to determine how the organization is perceived by consumers, employees and other stakeholders. Research is reported back to the class, followed by discussion of how HR activities can support the strategic direction of the organization. Wal-Mart is used as an example in this session of the module. note The video, Wal-Mart: The High Cost of Low Price, is NOT available at Wal-Mart. note you may find it at your public library or purchase it from Amazon.com. NOTE NOTE SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

5 I. Class activity: Student reports of research. II. Class activity: Wal-Mart mission and values. a. Wal-Mart s corporate philosophy: Handout and discussion. b. 20-minute video: Wal-Mart: The High Cost of Low Price. c. Video debrief and discussion III. HR functions in alignment with mission and values. Team or individual assignment for next class session: Case study The Green Team DPI Printing. Session 3: The purpose of this final class session is to give students practice aligning HR activities to reinforce the strategic goals of an organization. Before this session, students will read and analyze the case study, The Green Team at DPI Printing. Acting in the role of the HR manager for DPI Printing, students will identify HR practices that can influence the direction of DPI and recommend changes and HR activities to reinforce the organization s new direction. Students will present their recommendations to the class. This could be a team activity or an independent assignment, depending on time available and what works best in your classroom. The DPI case and materials are included at the end of these instructor notes. I. HR practices in alignment with mission and values. II. Student presentations of The Green Team at DPI Printing and discussion. III. Summary and wrap-up discussion: Correlating HR functions with the values and strategic goals of the organization. PowerPoint Slides PowerPoint slides for each section are included with recommended instructor notes. The majority of the slides relate to the first class session because the second and third classes include student presentations and discussion SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 3

6 Student Activities and Assignments Class Session 1 Slide 4: Start the class discussion by asking if students are employed. No doubt many will be. Ask students why their organization exists. Most will say it is to make money. This will generate discussion about the purpose and mission of organizations. Most students have never thought about an organization s purpose beyond making money. Slide 11: Distribute Microsoft s mission and values statement with the accompanying questions. Students can work individually or in groups to answer the questions and report back to the class. The purpose of this activity is to show students how HR functions integrate into an organization s mission. In question three, the concept of employees as customers of HR is reiterated by substituting the word employee in place of customer and people. Materials needed and suggested answers are provided at the end of these instructor notes. At the end of the first class session, assign the research project to be completed for the second class session. For this project, students will research the mission and values statements of an organization. This is most easily done through an organization s web site or corporate annual report. The intent is to examine what the organization says about itself. The second part of the research is to determine if the organization s actions actually demonstrate its affirmed values. This involves research outside the company s official information. Students should look to other media sources, customer comments, employee observations, reports from activist groups, etc. Students will write a two- to three-page paper discussing their findings and be prepared to discuss the results with the class. The written paper is due at the beginning of the second class. The research from this project will serve to generate discussion during the second class session. If you prefer no written paper, you could use another method to ensure the research is completed and the information is available. Some organizations that can be used for the research are suggested in the notes for slide 13. Allow students to suggest other organizations to investigate, but be sure there are a good variety of organizations in the mix. You will be using Wal-Mart for example in your next class session, so omit that organization from the list of eligible organizations for students to research. A handout describing the assignment is included at the end of these instructor notes SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

7 Class Session 2 Slide 15: Start your second class session with student reports of their research. Limit the duration of student reports (depending on how much time you have in class) to ensure there is enough time in the class session for the Wal-Mart video and discussion. Student reports should briefly discuss the following questions. The same questions will be addressed by the information in the Wal-Mart handout, the video and the discussion. 1. The company they investigated. 2. The company s mission and values statement. What does the company say about itself? 3. What do others say about the company? Employees? Consumers? The media? Activists? Others as appropriate? 4. Is there congruence between what the organization says and what the organization does? Slide 16: Distribute the Wal-Mart information found in the instructor notes. The information sheet includes the Three Basic Beliefs and Values statement found on Wal-Mart s web site at Before the video, spend a few minutes talking about the beliefs and values espoused in the Wal-Mart literature. Ask if any of your students have ever worked at Wal- Mart; current or former Wal-Mart employees will likely have information to add to the discussion. Ask if any students are Wal-Mart shoppers. They, too, may have information pertinent to the discussion. Show the summary version of the video Wal-Mart: The High Cost of Low Price. note The video, Wal-Mart: The High Cost of Low Price, is NOT available at Wal-Mart. note You may find it at your public library or purchase it from Amazon.com NOTE NOTE Due to its length (the full video is 90 minutes), view the shorter 20-minute summary in class. The 20-minute summary is well done and gives the same information as the full-length version. Ask students to think about the HR issues portrayed in the video while they are watching. After watching the video, ask students to discuss the three questions on slide 17. The information in the handout is very positive regarding Wal-Mart, whereas the video is very negative. Ask students to discuss the incongruence between the two and how consumers would determine the true picture of an organization. Ask students to identify the HR issues seen in the video and discuss how corporate citizenship can be influenced by HR functions SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 5

8 Slide 18: Assign the case study, The Green Team at DPI Printing, to be completed before the next class session. Before the final class, ask students to read the case study and prepare their answers to the questions presented in the case. This case could be an individual written assignment with students turning in their analysis in a three- to four-page essay followed by class discussion, or it could be a group project, with the group presenting its recommendations to the class via a PowerPoint presentation. Either process is appropriate; instructors should determine which works best in their classrooms. Student instructions for the assignment are included in the assignment handout SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

9 Class Session 3 Slide 20: Students will present their DPI case analysis and discuss what DPI s HR department can do to reinforce the organization s new direction. As with any case study, there is no single right answer, so be sure there is plenty of time to discuss the various options suggested by your students. Slide 21: Conclude the class by going back to the HR functions identified earlier and discussing the various ways each function can be aligned to support the organization s mission and values. Required Readings Mathis, R., & Jackson, J. (2008). Human resource management. Thomson/South Western Publishers, chapters 1 and 2. note NOTE There are a number of appropriate HR texts that could be used in place of note Mathis if you prefer. Most contain at least one chapter on strategic human resource management. NOTE Crawford, D. (2005, February). Adapting your accounting practices to triple bottom line reporting. CMA Management Magazine. Makower, J. (2000). Ten keys for educating and engaging employees. The Green Biz Magazine. Retrieved from Radtke, J. (1998). How to write a mission statement. The Grantsmanship Center. Retrieved from Statement.pdf. Additional References Ben & Jerry s. (n.d.). Our three part mission statement. Retrieved October 23, 2008, from audits/2006_sear/. Finegold, D., & Frenkel, S. (2006, January). Managing people where people really matter: the management of human resources in biotech companies. International Journal of Human Resource Management, 17:1, McGinn, D. (2007, October 8). Workers find jobs in emerging green economy: The search for renewable-energy sources is making clean-tech jobs hot. Newsweek. Retrieved October 23, 2008, from SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 7

10 Student Assignment The Role of Mission and Values in Strategic HRM Research Project Select a for-profit organization to research. Look at its mission and values statements and then at its activities to determine what the organization is doing to live those statements. Your research must address the following questions: 1. What organization are you investigating? 2. What is its mission and values statement? Describe what the organization says about itself. 3. What do others say about it? 4. Is there congruence between the two? Is the organization living its mission and values? 5. What HR activities does the organization engage in that reinforce its mission and values? You can usually find an organization s mission and values statement on its web site, in its annual report or in press releases. You will have to dig deeper to find what others say about the organization. Talk to employees and customers. Check the media. Look for lawsuits from employees, unhappy customers or activist groups. Look for the negative, but don t forget the positive. Are there testimonials from customers or awards for quality? Is the organization known for family-friendly policies? Is it listed as one of the best companies to work? Look at both sides. Summarize your findings in a two- to three-page paper and be prepared to discuss your results in class. Your paper is due at the beginning of the next class SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

11 Reading Assignment Radtke, J. (1998). How to write a mission statement. Retrieved from magazine/how%20to%20write%20a%20mission%20statement.pdf. Ben & Jerry s. (n.d.). Our three part mission statement. Retrieved October 23, 2008, from audits/2006_sear/. Suggested organizations Check with your instructor before starting research. nn Nike ( nn Anheuser-Busch ( nn Starbucks ( nn Kellogg s ( nn The Gap ( nn Sara Lee ( nn Olive Garden Restaurants ( nn Toyota ( SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 9

12 Case Study The Green Team at DPI Printing The Company Located in the painted desert of Arizona, DPI Printing is nestled between the towering mountains of the West and the expansive desert of the South. The organization was founded on the solid principles of hard work, innovation and quality. From the very beginning, the founders kept their sights outward, toward the wide open space of new possibilities. Established in 1986 as the first major direct-mail check printer, DPI Printing was founded to offer an exceptional value on high-quality checks. By maintaining a clear focus on this original objective, the company evolved and expanded over the years based on market trends and customer needs and desires. It currently offers more than 70 personal check designs, plus a full line of address labels, checkbook covers, check-related accessories and a complete line of business checks. In the last five years, the business line was expanded to include business printing beyond the financials, including rubber stamps, business cards, marketing materials, brochures and promotional items such as pens, mugs and shirts. The company prides itself on being the leader in corporate printing. The Task Differentiation in the market has been vital to this organization s success. As a result, the company has come to you, the HR manager, and asked you to be a participant on the newly formed company green team. This team s focus is on what DPI must do to become a more environmentally friendly business while maintaining its competitive edge. Your role on the team will be to identify what HR practices will be influenced by this new direction and to offer recommendations on changes that can be made within the HRM functions. You have already participated in several meetings where the following commitment statement was adopted: SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

13 Committed to the environment Damage to our environment threatens the long-term sustainability of our economy, our prosperity and our way of life. At DPI Printing, our environmental policies are shaped by our conviction that the health of our company is dependent on the health of our communities and society. Understanding that every part of our business has a potential effect on our environment, we are committed to integrating environmental policy at every level of our company s operations. Reducing our impact We strive to decrease our impact on the environment by: nn Exhibiting environmental sensitivity in our core business products and services. nn Implementing programs to recycle, reduce consumption emissions and eliminate waste. nn Getting employees involved through lifestyle changes. While many tasks still need to be addressed, you are currently preparing for the next meeting where you will discuss how your department will support the new mission and purpose. You must identify measurable objectives from an HR perspective about how your department s efforts will support this new organizational direction. Your presentation must include: 1. Internal company policies or programs (i.e., benefits, rewards, policies, systems, etc.) that will promote the three elements of the commitment statement. What do you recommend for this printing business using the eight HRM functions discussed in the first class session? 2. A plan for how employees will be educated about the programs. What methods should be used to engage employees in this process? Discipline? Promotions? Financial incentives? None of the above? 3. Additional staffing recommendations, if any. 4. Behaviors or changes that can be made in the HR department to reduce waste and contribute to the organization s new mission SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 11

14 Research Resources To help with this presentation, feel free to do your own research or use the following resources: 1. GreenBiz.com How To ( 2. McGinn, D. (2007, October). Workers find jobs in emerging green economy. Newsweek. Retrieved on January 6, 2009, from php?view= Ben & Jerry s. (n.d.). Our three part mission statement. Retrieved October 23, 2008, from audits/2006_sear/. 4. Microsoft. (n.d.). Who we are/mission and values. Retrieved from members.microsoft.com/careers/mslife/whoweare/mission.mspx. Mission Values Instructor s Manual_FINAL.docx DPI PRINTING CEO Director Sales Director Operations Director Human Resources Director Finance Sales Manager Warehouse Manager Transportation Manager HR Manager Customer Service Manager Purchasing Manager 4 Regional Field Reps 90 Employees Supervisors Machine Operation Labor 20 Commercial Drivers 2 Generalist 10 Customer Service Reps 4 Inventory Specialists 4 Marketing Specialists 3 Accounting Specialists SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

15 Microsoft: Who We Are Mission and Values Student Exercise Using the statement of mission and values on the following page, answer the following questions: 1. Which human resource management functions are identified in the mission and values of Microsoft? Which functions are missing? 2. How does the HR department influence how Microsoft wants to do business? 3. Re-read the document and replace customer and people with employee. Answer the following questions: a. What quality products can HR offer to employees? b. Identify at least two examples of human resource development in the revised version of the company s mission and values. 4. Why is it useful for HR to view employees as their customers? 2009 SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 13

16 Who We Are/Mission & Values Delivering on our Mission To enable people and businesses throughout the world to realize their full potential. Delivering on this mission requires a clearly defined set of values and tenets. Our company values are not new, but have recently been articulated to reinforce our new mission. Great people with great values QQ Achieving our mission requires great people who are bright, creative, and energetic, and who possess the following values: QQ Integrity and honesty QQ Passion for customers, partners, and technology QQ Open and respectful with others and dedicated to making them better QQ Willingness to take on big challenges and see them through QQ Self critical, questioning and committed to personal excellence and self improvement QQ Accountable for commitments, results, and quality to customers, shareholders, partners and employees. The tenets central to accomplishing our mission include: Customer trust. This means earning customer trust through the quality of our products and our responsiveness and accountability to customers and partners. Broad customer connection. This means connecting broadly with customers, understanding their needs and uses of technology, and providing support when they have questions or concerns. Tenets that propel our mission Innovative, evolving, and responsible platform leadership. This means expanding platform innovation, benefits, and opportunities for customers and partners, openness in discussing our future directions, getting feedback, and working with others to ensure that their products and our platforms work well together. Enabling people to do new things. This means broadening choices for customers by identifying new areas of business, incubating new products, integrating new customer scenarios into existing businesses, exploring acquisition of key talent and experience, and integrating more deeply with new and existing partners. A global inclusive commitment. This means thinking and acting globally, employing a multicultural workforce that generates innovative decision-making for a diverse universe of customers and partners, innovating to lower the costs of technology, and showing leadership in supporting the communities in which we work and live. Excellence. This means excellence in everything we do to deliver on our mission. At Microsoft, we re committed to our mission: improving the potential of our customers, and the world. Source: Microsoft, SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

17 Microsoft: Who We Are Mission and Values Student Exercise SUGGESTED ANSWERS 1. Which HRM functions are identified in the mission and values of Microsoft? Which functions are missing? HR functions identified: nn Staffing: achieving our mission requires great people who are bright, creative and energetic. nn HR development: committed to personal excellence and self-improvement. nn HR planning: this means broadening choices for customers by identifying new areas of business. nn Employee relations: This means excellence in everything we do. nn Global HRM: A global inclusive commitment. nn Diversity: diverse universe of customers and partners. HR functions not identified: nn Compensation nn Health, safety and security. 2. How does the HR department influence how Microsoft wants to do business? Employing a multi-cultural workforce requires a relationship with HR that allows for staffing processes and accommodations for a truly diverse workforce, from religious accommodations to dealing with language barriers. In addition, the older workforce is less likely to embrace new technology, so actively seeking out that community will take a conscious recruiting effort by HR. Building leaders and enabling employees to improve themselves requires a comprehensive employee development program and an effective compensation plan to reward professional development efforts SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 15

18 3. Re-read the document and replace customer and people with employee. Answer the following questions: a. What quality products can HR offer to employees? nn Benefits nn Training nn Responsiveness (minimal voic !) nn Coaching and development opportunities nn Career planning nn Policies that are realistic and appropriate nn Clear and accurate job descriptions nn Fair and livable wages b. Identify at least two examples of human resource development in the revised version of the company s mission and values. (Students may suggest others.) a. This means expanding platform innovation, benefits, and opportunities for employees and partners, openness in discussing our future directions, getting feedback. b. This means broadening choices for employees by identifying new areas of business. c. Committed to personal excellence and self improvement. 4. Why is it useful for HR to view employees as their customers? Just as a company cannot exist without customers, HR cannot exist without employees. HR plans for them, recruits them, pays them, disciplines them and rewards them. From development to compensation, keeping employees productive and growing fuels the engine that is company growth. By applying an organization s mission and values to its employees, HR has a blueprint that models the strategic desires of the organization SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR

19 Wal-Mart Stores 3 Basic Beliefs & Values Three simple things that make us great: Our unique culture has helped make Wal-Mart one of the world s most admired companies. Since Sam Walton opened the first Wal-Mart in 1962, our culture has rested on three basic beliefs. We live out these beliefs every day in the way we serve our customers and each other. 1. Respect for the Individual We re hardworking, ordinary people who ve teamed up to accomplish extraordinary things. While our backgrounds and personal beliefs are very different, we never take each other for granted. We encourage those around us to express their thoughts and ideas. We treat each other with dignity. This is the most basic way we show respect. 2. Service to our Customers Our customers are the reason we re in business, so we should treat them that way. We offer quality merchandise at the lowest prices, and we do it with the best customer service possible. We look for every opportunity where we can exceed our customers expectations. That s when we re at our very best. 3. Striving for Excellence We re proud of our accomplishments but never satisfied. We constantly reach further to bring new ideas and goals to life. We model ourselves after Sam Walton, who was never satisfied until prices were as low as they could be. Or that a product s quality was as high as customers deserved and expected. We always ask: Is this the best I can do? This demonstrates the passion we have for our business, for our customers, and for our communities. Unique values support our three beliefs. Click on the links below for stories from Wal-Mart associates that illustrate the importance of our core beliefs. Respect for the Individual Service to our Customers Striving for Excellence Servant Leadership Open Door Accountability Open Communications People Development Trust Humility Caring Teamwork Empowerment Confidentiality Listening Diversity Friendly Atmosphere Pleasant Shopping Experience Every Day Low Prices Aggressive Hospitality Sundown Rule Satisfaction Guaranteed Sense of Urgency The 10-foot Rule Community Minded Quality Always! Continuous Improvement Dissatisfaction with the Status Quo Results Oriented Integrity Always! Competitive Spirit Sustainability Failure Allowance Risk-taking Encouraged Expense Control Change Agents Compliance with the Laws Source: Wal-Mart, SHRM. Myrna L. Gusdorf, MBA, SPHR, and Sandra M. Reed, SPHR 17

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